Starbucks CEO calls reversal of open-door policy 'practical," will close stores if needed
Starbucks (SBUX) CEO Brian Niccol said the company is putting a welcoming experience and safety first as it reverses its open-door policy.
Earlier this month, the 54-year-old company shared plans to implement a Coffeehouse Code of Conduct where only paying customers can sit in-store or use the restroom — a reversal from its practice of letting anyone in the door. Niccol said the change was made due to feedback from customers and employees.
"In order to be the coffeehouse that we want to be, we need to bring some practical pieces to our Code of Conduct," Niccol told Yahoo Finance. "Our first priority is our paying customers ... that just makes a lot of sense."
When asked if more security would be needed to implement the change, he said, "If we do need to have additional security, we'll do it," adding that the "No. 1 priority" is for employees to feel supported as they serve customers.
"They need to know that they're safe, and they need to know that we're going to be right there with them," he said, noting that if there are cases where the economics don't work, "we'll close the store."
Creating a premium store experience could be a key part of differentiation as drive-through coffee chains like Dutch Bros (BROS), Scooters, and 7 Brew continue to expand.
"I really do believe the combination of our partners, the quality of our coffee, the craftsmanship that we provide, and then the third-place experience that we can deliver, nobody else does it like us," Niccol said.
Starbucks has the potential to double its footprint in the US, projected Niccol. The company currently has over 17,000 locations and opened 113 stores in North America in its most recent quarter.
But it's not all good news.
"Unfortunately, there will be some stores that will have to close along the way so that we set ourselves up for success going forward," he said. He pointed out markets like Texas and the southeast as under-penetrated for Starbucks.
In a note, William Blair's Sharon Zackfia wrote that she expects restaurant development "to slow at an unspecified rate in fiscal 2025," compared to a 6% systemwide growth in fiscal 2024. The company needs to "accommodate upcoming redesigns and renovations while unlocking capital for broader turnaround efforts."
She added that new US locations tend to outperform, contributing to "nearly 90% incremental sales within trade areas."
—
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.
Click here for all of the latest retail stock news and events to better inform your investing strategy
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
34 minutes ago
- Yahoo
American Tower Corporation (AMT): A Bull Case Theory
We came across a bullish thesis on American Tower Corporation (AMT) on FindingMoats' Substack. In this article, we will summarize the bulls' thesis on AMT. American Tower Corporation (AMT)'s share was trading at $214.11 as of 2nd June. AMT's trailing and forward P/E were 34.65 and 31.95 respectively according to Yahoo Finance. An iconic skyline with one of the company's iconic REITs in the foreground. American Tower (AMT), one of the largest global REITs, offers investors a unique blend of essential infrastructure exposure and long-term stability. With over 225,000 telecom towers worldwide, AMT serves as the critical backbone for global wireless networks, enabling carriers like Verizon, AT&T, and Telefónica to deliver seamless connectivity. The company's appeal lies in its robust business model—built on long-term, non-cancellable leases that include price escalators and a multi-tenant structure that drives high-margin operating leverage. As more tenants are added to a tower, incremental revenue flows through at nearly 90% margins, offering tech-like profitability alongside infrastructure-level stability. Over the past decade, AMT aggressively expanded into international markets, acquiring tower portfolios across both developed and emerging economies. However, it is now shifting gears, divesting lower-performing assets like those in India to sharpen its focus on high-return, core geographies. While this strategic recalibration enhances capital efficiency, it coincides with slowing growth and emerging technological shifts, raising questions about future positioning. The rise of 5G infrastructure, industry consolidation, and looming satellite-based alternatives like Starlink and Kuiper present both risks and opportunities. AMT finds itself at a critical juncture—balancing the durability of its existing model with the need to adapt to potential disruption. The company's long-term success will depend on how effectively it navigates this tension, leveraging its scale, contractual revenue base, and management discipline. With growth less of a central driver, AMT's investment thesis now hinges on resilience, cash flow stability, and optionality—factors that could prove vital as the telecom landscape undergoes structural transformation. American Tower Corporation (AMT) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held AMT at the end of the first quarter which was 70 in the previous quarter. While we acknowledge the risk and potential of AMT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
35 minutes ago
- Business Insider
Mark Cuban says Bluesky's echo chamber is hurting engagement — and boosting Elon Musk's X
Mark Cuban criticized Bluesky for becoming an echo chamber, warning it was driving some users away. Engagement on Bluesky has plunged since February, with far fewer daily unique users. Cuban questioned BlueSky's future, citing vanishing nuance and an absence of some topics. In a series of Bluesky posts, the billionaire investor and entrepreneur criticized the platform for fostering an echo chamber that he said was driving users away and inadvertently boosting traffic back to Elon Musk 's X. "The lack of diversity of thought here is really hurting usage," Cuban wrote, linking to a Washington Post opinion piece headlined "BlueSky's decline stems from never hearing from the other side." Once known for "great give-and-take discussions on politics and news," Cuban said Bluesky had become a monoculture where dissent was unwelcome and nuance was vanishing. "Engagement went from great convos on many topics, to 'agree with me or you are a Nazi fascist,'" he posted. A graph of Bluesky's unique daily posters supports his concern. On February 28, Bluesky had more than 1 million unique users daily. Since then, engagement has plummeted, with June 7 and 8 hovering well below that peak at about 670,000 daily posters. The Musk factor BlueSky's rise accelerated following the election of President Donald Trump, whom CEO Musk backed financially, and after X introduced new terms of service. Many X users migrated to Bluesky, with some 2.5 million joining in one week in November. Some were seeking a friendlier, more open platform with less hate speech and misinformation, and more control over what content is shown in their feeds. A startup, BlueArk, even sprang up to help users migrate their X/Twitter histories to Bluesky, porting over millions of posts and creating the illusion of continuity on a new platform. At the time, Cuban told Business Insider he preferred Bluesky over alternatives due to its variety of content and growing engagement. Now, some of the earliest and most visible converts, including Cuban, are questioning whether the migration created a new community, or just repackaged the same silos. "Why would anyone stop using Twitter if the only topic that is acceptable to you is news and politics?" he asked. Cuban also criticized the platform's culture, saying: "The replies on here may not be as racist as Twitter, but they damn sure are hateful." Posts about AI, business, or healthcare — traditionally strong areas for Cuban — often gain little traction or were met with outright hostility, he added.
Business Insider
an hour ago
- Business Insider
Mark Cuban says Bluesky's echo chamber is hurting engagement — and boosting Elon Musk's X
Mark Cuban is sounding the alarm on Bluesky's declining engagement — and he's not pulling his punches. In a series of Bluesky posts, the billionaire investor and entrepreneur criticized the platform for fostering an echo chamber that he said was driving users away and inadvertently boosting traffic back to Elon Musk 's X. "The lack of diversity of thought here is really hurting usage," Cuban wrote, linking to a Washington Post opinion piece headlined "BlueSky's decline stems from never hearing from the other side." Once known for "great give-and-take discussions on politics and news," Cuban said Bluesky had become a monoculture where dissent was unwelcome and nuance was vanishing. "Engagement went from great convos on many topics, to 'agree with me or you are a Nazi fascist,'" he posted. A graph of Bluesky's unique daily posters supports his concern. On February 28, Bluesky had more than 1 million unique users daily. Since then, engagement has plummeted, with June 7 and 8 hovering well below that peak at about 670,000 daily posters. The Musk factor BlueSky's rise accelerated following the election of President Donald Trump, whom CEO Musk backed financially, and after X introduced new terms of service. Many X users migrated to Bluesky, with some 2.5 million joining in one week in November. Some were seeking a friendlier, more open platform with less hate speech and misinformation, and more control over what content is shown in their feeds. A startup, BlueArk, even sprang up to help users migrate their X/Twitter histories to Bluesky, porting over millions of posts and creating the illusion of continuity on a new platform. At the time, Cuban told Business Insider he preferred Bluesky over alternatives due to its variety of content and growing engagement. Now, some of the earliest and most visible converts, including Cuban, are questioning whether the migration created a new community, or just repackaged the same silos. "Why would anyone stop using Twitter if the only topic that is acceptable to you is news and politics?" he asked. Cuban also criticized the platform's culture, saying: "The replies on here may not be as racist as Twitter, but they damn sure are hateful." Posts about AI, business, or healthcare — traditionally strong areas for Cuban — often gain little traction or were met with outright hostility, he added.
